Can Employees Claim Compensation If They Refuse Relocation to New Headquarters?

Employee Relocation and Compensation Query

I am working in a healthcare company headquartered in Mumbai. Our company has several retail outlets throughout the country. Our management has conveyed to the employees that it has sold the assets and liabilities of the company to another management. Now, our new employer is planning to issue new appointment letters and transfer all the employees to their headquarters in Delhi after 3-4 months. It may not be feasible for all employees to relocate.

My question is, if someone chooses not to accept the offer, can the employee claim compensation from the current employer or not?

Dear friends, please assist me with this matter as it will benefit many of my colleagues. I also request you to address any valid points related to such scenarios.

Thanks and Regards,
Sidharth

Closure of Establishment and Employee Compensation

This is a case of closure of establishment. As per Section 25F (25N in case the establishment employs more than 100 employees), employees are required to be paid compensation at the rate of 15 days' salary for every completed year of service. Section 25FF also states that necessary formalities are to be followed in the case of workmen as if they are retrenched if the ownership of the undertaking is transferred.

However, if the transferee (new company) is willing to absorb the employees without any change in their service conditions and considering their length of service, then no compensation is required to be paid. At the same time, if any of the employees do not want to be on the rolls of the new company due to any reason like a change in the place of posting, then they should be compensated as if they are retrenched.

Regards,
Madhu.T.K